Extending Ethics Rules to the Prediction Economy

[lingriiddd]

Supporters of the proposed legislation say it mirrors existing ethics laws like the STOCK Act, which restricts insider trading by government officials. By extending similar standards to decentralized prediction markets, lawmakers aim to close a regulatory gap that has emerged alongside blockchain-based betting platforms.

According to reporting from Punchbowl News, the bill would ban the use of material non-public information tied to enforcement actions, court rulings, or foreign policy decisions. The broader objective is to preserve the credibility of prediction markets, ensuring they reflect collective insight rather than privileged access.

[mendez]

prediction markets only work if insiders arent gaming them, so this bill via Punchbowl News sounds overdue